The EBRD is planning to provide a senior loan of up to KZT 29 billion (€ 57.4 million) to Almatyelectrotrans LLP (the Company), a municipal public transport company in the city of Almaty (the City). It is envisaged, that the loan will be used to finance (i) the acquisition of up to 190 modern, energy efficient trolleybuses to renew the company's existing fleet, (ii) the procurement of trolleybus maintenance machinery and equipment, and (iii) the rehabilitation of up to 10 power supply sub-stations. The company is a public transport entity 100 per cent owned by the city. The city will provide a grant co-financing of KZT 10.9 billion (€ 21.6 million) for the (iv) depot facilities rehabilitation, and (v) the modernisation of the trolleybus infrastructure in the city.
The Project is aimed at improving public transport services in the city in terms of quality, reliability, sustainability and environmental, health and safety standards. The project contributes to the reduction of GHG emissions through energy efficiency increase. The project is a 'trigger project' under the EBRD's Green Cities Framework 2 (the "GrCF2") under which development of the Green City Action Plan ("GCAP") for Almaty will be covenanted in the financing agreements.
ETI score: 70
The project fully complies with the transition objectives of the Bank's GET approach and Green Cities Framework, focusing on Green as the primary transition quality through the reduction of GHG emissions and GCAP development.
The project also contributes to the well-governed quality, as it envisages (i) amendment of the Public Service Contract between the Company and the City to incorporate the trolleybus-km concept; (ii) update of the Corporate Development Programme ("CDP") to further improve the Company's operational procedures and commercial standing, service and environmental performance.
The company manages the operation of around 800 buses and 190 trolleybuses on a daily basis carrying around 160 million passengers per year (35 per cent of the total city's passenger traffic, including 10 per cent covered by trolleybus operations). The company services 57 bus and 9 trolleybus lines, with a total route length of around 3,000 km and 250 km respectively. The Company owns 4 bus and 1 trolleybus depots including 18 active power supply sub-stations with a total capacity of more than 55 MW. The total number of employees is around 2,500.
EBRD Finance Summary
Senior secured loan of up to KZT 29 billion (€ 57.4 million). The loan will be backed by a Project Support Agreement ("PSA") to be signed between the Bank, the municipality ("City Akimat") and the company.
Total Project Cost
A co-financing of KZT 10.9 billion (€ 21.6 million) to be provided by the city for the depot rehabilitation and modernisation of the trolleybus infrastructure in the city.
The Loan is a subsequent transaction with the same client in Kazakhstan Additionality sources include the following components: (i) financing structure; (ii) risk mitigation; (iii) support to achieve higher standards; and (iv) knowledge, innovation, and capacity building.
Environmental and Social Summary
Categorised B in accordance with the EBRD's 2019 Environmental and Social ("E&S") Policy. Key E&S impacts/risks to consider include overall EHS management capacity and performance, labour, health & safety and road safety practices and standards. Environmental and Social Due Diligence ("ESDD") is currently being undertaken by an independent consultant as part of the Feasibility Study and includes a review of the current status of the Client's existing management systems and operations with specific attention to the maintenance depots, electrical safety issues, road safety and driver training, labour practices, equal opportunities and gender, waste management and disposal of the old fleet, accessibility and mobility for all user groups, affordability issues, stakeholder engagement and grievance mechanism. It also includes an analysis of the E&S benefits and impacts associated with the Project. An Environmental and Social Action Plan will be developed to structure the Project to meet the EBRD PRs, as well as a Stakeholder Engagement Plan. This section will be updated upon completion of ESDD.
Technical Cooperation and Grant Financing
- TC 1: Project Preparation: € 200,000; financed by the EBRD Shareholder Special Fund ("SSF").
- TC 2: Development of the Green City Action Plan: € 300,000; financed by the Government of Austria.
- TC 3: Procurement Support: up to € 400,000; to be financed by an international donor or SSF.
- TC 4: Corporate Development Programme: up to € 150,000; to be financed by an international donor or SSF.
- TC 5: Pre-shipment Inspection: up to € 150,000; to be financed by an international donor or SSF.
Company Contact Information
Berikhan Murzakarimov, General Director
+7 (727) 313-27-84
67 Tole bi str, Almaty, 050000, Kazakhstan
PSD last updated
02 Sep 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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